IRVINE, Calif. — A Southern California man has pleaded not responsible to costs he obtained $5 million in federal coronavirus-relief loans for phony companies after which used the cash for lavish holidays and to purchase a Ferrari, Bentley and Lamborghini, prosecutors mentioned Monday.
Mustafa Qadiri, 38, was arrested final week on suspicion of scheming to defraud the Paycheck Safety Program, which was carried out final 12 months to assist small companies struggling through the COVID-19 pandemic.
Qadiri, of Irvine, pleaded not responsible Friday to a number of costs together with financial institution fraud, wire fraud, aggravated id theft, and cash laundering, in accordance with the U.S. Lawyer’s Workplace. Qadiri’s legal professional, Bilal A. Essayli, declined additional remark Monday.
Prosecutors mentioned Qadiri submitted fraudulent PPP mortgage functions to 3 banks on behalf of 4 firms that did not really exist. The functions included altered financial institution data, faux tax returns and false details about staff, in accordance with the indictment.
Qadiri additionally used another person’s identify, Social Safety quantity and signature to fraudulently apply for one of many loans, prosecutors mentioned.
He acquired $5 million in loans that investigators mentioned he used to pay for journeys, sports activities vehicles and private bills.
Federal brokers have seized the Ferrari, Bentley and Lamborghini vehicles that Qadiri bought, together with about $2 million from his financial institution accounts, prosecutors mentioned.
U.S. District Decide Josephine L. Staton scheduled a jury trial for June 29. Qadiri was launched on $100,000 bond.